Jason Furman, a Harvard economist and former chair of the Council of Economic Advisers, shared his perspective on wealth and high-income taxes, suggesting a broader view on revenue impacts. On Thursday, October 22, 2026, Furman posted on X, stating, "One thought no one will like on the CA wealth tax (and also on high-income taxes in other states): To some degree as a quasi-utilitarian I should be thinking about what it does to total revenue not state revenue. If CA loses 80 but Texas and Florida gain 100 that could be good."
This statement comes during ongoing discussions regarding state tax policies and their effects on migration and economic activity. Recent economic analysis includes Australia's growth forecast being cut below 1.75% as rate hikes impact the economy, and Peter Schiff's warning about inflation data pointing to a worsening cost of living crisis. BlackRock has also noted that corporate bond yields are becoming self-sustaining without the need for rate cuts.
Furman's view implies that the economic analysis of state-level taxation, such as a California wealth tax, should consider the net effect on national revenue rather than solely focusing on the revenue generated or lost by the implementing state. His example suggests that if a tax leads to outflows from one state that are more than offset by inflows and revenue gains in other states, the overall economic outcome could be positive, even if unpopular locally.
